The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-10-26
TIE PACIFIC RAILWAYS.
Resumption of the Observation-Disclosures
ing Testimony of Efingham H. Nichols.

New YORK, Oct 25-The Pacific railway
commission resumed its inquiries at No. 10 Wall
street to-day. Its Investigations are about to
close and it was said by the commissioners that
probably the witnesses at this hearing would be
the last called. telegram from Governor
Stanford was read, in which he desired the ap-
pointment of a court to inquire into the equities
existing between the government and the Cen
trail Pacific.
bingham II. Nichols, formerly treasurer of
the central branch of the Central Pacific rail-
way, then known as tie Atchison & Pixies Peak
railway, was the first witness. He detailed the
organization and construction Of the first hun
dred miles of the Atchison e. Pixies Peak rail-
road He said he considered that the road had
q perfect right to consolidate with another
road, and that its grants of land
should go to the road into which
it was merged. The witness then explained tn
difficulty they had experienced in trying to full
fill the government requirements, and had fin
ally found it impossible to fully carry out the
road. Only e-tenth of the lands which were
be granted to them by the government came to
them. Commissioner Anderson remarked that
it seemed impossible that a road intended to be
run only one hundred miles should be allowed
to consolidate and run to the Pacific. The wit
ness replied that statute permitted the consoli-
dation In the solidation with the Atchison,
Colorado 81 Pacific, among the controlling pow
ers were Oliver Ames, R. NJ. Pomeroy, Erastus
Corning, Chauncey and Henry Willard. William
G. Wetmore, John A. Stuart Gov. VIM. Olaf
lin and A. S. Barnes The road employed
among many others, Thomas A. Hon
bricks and Revsrdy johnson, but not
when they were in Office. Before the organi-
cation, when he came in. four hundred first
mortgage bonds were issued to those previously
in power. but he has never been able to find the
reason for it; but this obligation made
di tional when he and his friends went into the
co mpanv. The witness nsver received any of
these 400 bonds The books of the construction
of tine road. known IS the Osborne books. were
lost Thomas NJ. Lother attended to the dis
bursements. No other money, the bands.
the witness said. was disbursed except for COM
pensation. The witness said that no bond nor
dollar was distributed except for a return. but
bonds were issued in consideration of loans. IL
$40, 600 or $25. 900 was pnt into the company for
three or four months, bond would be given
bonds were issued. Then there bonds
for what were known existing obliga-
tions," which were not defined. The
witness got four of the bonds, SHOWN by the
books. Governor Ames kept a memorandum Of
the roads transactions q note book. Between
1870 and 1873 the road was in bad way. In
1879 the first mortgage bonds had to be funded
When the witness and his friends resolved to
run the road to Denver. Jay Gould stepped in
and paid $3.50 per share for stock that was. ac-
coriing to the witness of little value. Mr.
Nichols said he believed that Mr.. Gould got his
Information as to the roads Intention from ono
Joe Richardson. who was flung out of different
Offices on the road. After the sale was made
the witness who conducted it, was paid 900
for legal services. When he went to Washing
ton in 1863 to about the bill for the relief of
the central branch. Mr. Nichols inter-
viewed tho Congressman No money was
given to Congressman, but some was
expended in dinners for them at the Arlington.
quanted with the members and talking about
the bill. Between January and July. 1870. $685..
Al was expended for such incidental expenses
William =. Evarts was paid fee of So, COO
Two items of 81 900. which were charged against
him, Mr.. Nichols said were probably for some
political operations of Mr.. Pomeroy. Mr. Mich
OILS said that any differences from the books Of
the central branch to the effect that be had not
paid full value for all the stock issued to him
were incorrect He had paid first at the rate of
$50 share, and afterwards $40 a share. The
books showing that for 1,616 shares of stock
issued at time. and 199 shares a.
another. he had only paid $62. 100 to the
company could not be right. He believed he
had 901 shares of his own, lOl of his fathers
tate, part of which he transferred TO Oliver
Ames. Mr. Nichols said that he paid at the
rate of 800 per share on such stock as he re-
ceived. The books upon which the accountants
of the commission had based their figures must
be wrong. He could not understand why the
books did not show any payment by him for 1879
shares at one time, nor could he explain why he
should pay it's par value for stock about Janua-
~, 1879, when GouIi about to buy in the
stock at $780, and while the stock was selling
low as 80 cents on the dollar.
Commissioner Anderson astonished the wit
ness by asking him what had become Of $l3l, 600
charged against him on the books.
The witness thought it must have been for
counsel fees dinners for Congressman and incl
dental expenses. The witness thought the CEN
trail branch was yet entitled to government
lands $50 miles beyond the western terminus of
the road. He did not believe the fact that they
bad not carried their road out that distance
made any difference They had filed their maps
and exonerated from a continuance of the
road. Mr.. Nichols believed that the government
should wipe out the accumulation of interest
all its claims against the Pacific railroads,
they have all benefited the public to greater
extent They could then pay the principal.